There’s a set maximum of Sims that you can have in your town. Once that maximum is reached, the culling process hits your game. Currently the maximum is 800 Sims. Ghosts no longer count towards this limit.
Since November 2017 Sims 4 distinguishes between My Households and Other Households. This is to stop the aggressive culling and handle it better. On top of this you will be notified if a Sim with which your active household had a relationship gets culled. You will get a message that they moved away.
It doesn’t matter anymore if your household live somewhere or nor not, if you played them or not. It’s your decision which families are safe from culling. Households will be automatically moved to My Households if you change to them but it’s up to you to remove them again afterwards. Activily played families are always safe from culling.
All households in My Housholds are safe and will not get culled. The player has a choice how many households they want to be able to move to My households. You can choose between 80, 150, 200 or unlimited.
Unlimited doesn’t mean all your Sims will be safe. It just means that you can move as many Sims to My Households as you like. Sims in Other Households will still be culled once you hit the culling limit. For performance reasons this setting is not recommended.
The ideal setting depends on your computer. If yours barely makes the minimal requirements it’s best to leave it on 80 Sims.
Played households are automatically in My Households. To make them unplayed, click on the picture of the household and then the plumbob in the lower right corner. To make them played again, you need to load the household.
The number of Sims in My Households only count Sims in the households – so Sims that died don’t count towards the total unless they are added to the household as ghost. More details below.